Customers won't cut haircuts from their budgets

Artistic Edge co-owner Shannon McCarthy, center, says goodbye to customer Tina Hall, far right, who had her hair done for her bridal portraits, while working on client Dara Raborn, left, at the San Antonio salon this month.

SAN ANTONIO - When hair is clipped more often than coupons, you know the economy is bouncing back.

Beauty salons may be one of the few recession-proof industries, with women more likely to give up shoes than regular trims and color - regardless of the state of the economy.

"Instead of going to your psychiatrist, you go to your hairstylist because they make you feel good," said Pat Stewart. "I would not give up my hair appointments. I would give up something else like new clothes - anything but hair and golf."

Kim Reinagel said for women, hair care is a necessity.

"You always have to get your hair cut. It's just one of those categories for women where you have to make it happen," Reinagel said.

According to an IBISWorld report, the salon industry produced $42.6 billion in revenue in 2008. When the recession first hit, it dipped slightly to $42.3 billion in 2009 as consumers waited longer between trims and spent less money on luxury items like massages and waxing services. The industry came back up a year later to $44.2 billion.

This year, the salon industry is expected to make $46.4 billion in revenue.

Jeremy McCarthy, owner of Artistic Edge Hair Salon in Stone Oak, said his clients have said they would rather eat ramen noodles or unsubscribe from cable before they stopped going to the salon.

"Women have a tendency to not give up on their hair," McCarthy said. "I really thought they would."

Keeping it flexible

When the economy took a turn for the worse, salon owners implemented resourceful ways to keep their clientele and their businesses financially stable. If a client wanted a haircut at a price that was no longer in their budget, a stylist could be willing to work around the client's needs.

Kathy Thalman, CEO of K. Charles & Co. Salons, said her salons have always had a customizable service plan, but clients started asking for less expensive services when the economy took a hit.

Thalman said there also are ways women can extend the life of their haircuts, such as adding layers, which disguises uneven ends as hair grows.

"The flexibility has given (customers) a sense of confidence when they come in, and (customers) know that we can work with them and not sacrifice their look," Thalman said.

McCarthy said he and his wife, Shannon, see many of their clients so often that they become like family, so they decided to offer their hair services at reduced rates when several clients started to express their financial troubles.

Sandy Talmadge, Encino Ranch resident, has been a loyal client to Jeremy McCarthy for more than 10 years. When McCarthy found out her husband lost his job during the recession, he started offering services at a highly reduced rate.

Talmadge was accustomed to getting a haircut, full hair color and highlights every month. Talmadge said now her hair routine only includes highlights and a haircut every six to seven weeks. She said McCarthy has reduced the price of her hair services to almost 50 percent.

"When you go through a hard economic change and your lifestyle has changed, you still want to look pretty," Talmadge said. "I think that is why Jeremy did it, to make us feel better when everything is falling apart."

Business is growing

Jeremy McCarthy said helping his customers creates a long-term relationship. And when there's a recession all around you, some business is better than no business.

He said he helps his clients until they can start paying in full again.

McCarthy said he has more clients now than in 2009, and they frequent the salon more often.

Jennifer Vasquez, hairstylist at Artistic Edge, said when the salon opened in 2009, it took several years for the hairstylists to be busy. Vasquez said now every hairdresser constantly has clients. "(Clients) feel more stable now."